Letitia James Tries to Explain Her Way Out of Mortgage Mess ‘Mistake’ [WATCH]

New York Attorney General Letitia James is now the subject of a federal investigation into multiple allegations of mortgage fraud.

The probe includes claims that James made false statements on legal and financial documents related to real estate transactions, including a property purchase in Virginia and an earlier mortgage dating back to the 1980s.

The investigation comes in the wake of James’ high-profile legal actions against current President Donald Trump, whom she sued in a civil case resulting in a $454 million judgment.

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That case is currently under appeal.

In public remarks following news of the investigation, James denied wrongdoing and described the probe as politically motivated retaliation.

“This investigation into me is nothing more than retribution,” she said.

“It’s baseless.” James explained that the focus of the federal inquiry stems from a power of attorney she signed for a property purchase in Virginia for her niece, who has children.

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James claimed the power of attorney mistakenly indicated that she was a resident of Virginia, while asserting that elsewhere in the mortgage application she clearly stated she was not.

“They just took the power of attorney, and they are using that as the basis for enforcement for their investigation,” James said.

“The power of attorney was never used to determine my eligibility for a mortgage.”

James went on to say that she helped her niece purchase the home out of a desire to support family, adding, “Because I am a good aunt, I wanted her to have a home.”

.@TishJames nervously admits she “mistakenly” put her residence on a power of attorney (POA) document as being in Virginia.

That’s not a mistake. Any decent lawyer knows how significant a POA document is. So she’s either a fraudster or a sloppy lawyer.

Which is it Big Tush? pic.twitter.com/mnLL5tcojx

— Paul A. Szypula 🇺🇸 (@Bubblebathgirl) May 21, 2025

The federal investigation reportedly involves more than the Virginia incident.

Authorities are also examining claims that James falsely listed her father as her husband on a 1983 mortgage document.

Additionally, she allegedly misrepresented the number of units she owned on a rental property in New York, which reportedly allowed her to obtain more favorable mortgage terms.

Federal officials have not commented publicly on the investigation.

The case is being reviewed by officials with the Department of Justice, though the timeline for any potential charges or further legal action remains unclear.

James is no stranger to legal controversy. Her pursuit of legal cases against political figures has drawn national attention.

Critics have previously pointed to her campaign statements pledging to investigate Donald Trump, accusing her of politicizing her office.

Despite this, James has continued to serve as New York’s top legal officer and has maintained strong support among Democrats in the state.

As part of her defense, James emphasized that she never intended to mislead any financial institutions and that the details under review are being misrepresented.

“I have no idea when that case will be decided,” she said of the Trump judgment, “but this investigation is not grounded in facts.”

While James has not been formally charged with any crimes, the allegations raise legal questions that could have broader implications for her role as attorney general.

A conviction on mortgage fraud could potentially affect her ability to serve in public office, depending on the outcome of the investigation and any ensuing legal proceedings.

Her next steps remain to be seen, but the probe is likely to draw continued national attention, especially given her role in ongoing litigation involving prominent political figures.

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